The US does not take advantage of the dollar’s dominance in the world, as it has to compensate for the consequences of the trade policy of countries with a positive trade balance. In this respect writer Edition of the Foreign Affair.
To play the role of the core of the world economy, the publication said, States must allow capital to move freely across their borders and absorb the savings and demand imbalances of other countries. That is, the United States must run a capital deficit to make up for other countries’ surpluses. This, in turn, reduces global demand and helps restore economic balance.
According to the publication, the United States does not always have to run a trade deficit to connect the global trading system to the dollar. For example, when the world needs savings, the US supplies them and runs a trade surplus. Conversely, America is already running a trade deficit.
The authors of the article thought that the US, like the rest of the world, would benefit from the disappearance of the dollar from being the dominant currency. While Washington’s power is limited, American businesses will grow much faster and workers will earn more. But this is not easy to achieve, because the general rejection of the dollar can have a devastating effect on the economies of countries that are consistently positive and focused on exports only.
June 7, former CIA adviser James Rickards declarationIf the BRICS countries create their own currencies, it will mean the collapse of the dollar’s dominance in the world. In addition, this situation will push the US economy to collapse even more.
Previously reportedThat Russia and its partners are planning the collapse of the US currency.